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The company I choose is CocaCola for the year ending in 2021. Download the most recent copy of the company's 10-K report. The parameters for

The company I choose is CocaCola for the year ending in 2021. Download the most recent copy of the company's 10-K report. The parameters for the week 7 project deliverable are as follows. The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.) The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project. The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate.

  • Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project
  • Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project.
  • The following capital budgeting results for the project
    • Net present value
    • Internal rate of return
    • Discounted payback period.

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